Overall Rating: Scam
Quick Summary: Is Lularoe a scam? This is an average to below average clothing company, that charges you way to much for “non name brand” clothing that has questionable manufacturing defects they don’t address. They have no real clear advantage over other similar companies. These clothes cost a good amount (6k) to get the starter kit to start selling. Also these clothes are very hard to sell for the MSRP price.
Lularoe states that you can make around on average $12.5 from the 6k investment but only if you sell everything for top dollar, which just doesn’t happen. This company has nothing special and also gives you what they feel and not what you want, which I find insane. They could literally give you all the stuff that doesn’t sell for them and their immediate family who are also reps. They have been said to give you one or two more sought after pieces for every 30-40 flop/ugly pieces.
They have so many people selling the same type of low quality clothing. This company is also growing too fast which is effecting their customer service and overall quality. There wasn’t much quality to begin with growing fast but has diminished that further. They have had problems with double or triple charging customers and orders just disappearing. Don’t expect to make a complaint to Lularoe as they only want to see positive comments and could end your account for asking too much. If you want to sell online, way too many are doing it already. You will need to be a in home shopping specialist going to other people’s houses trying to sell a few items here and there and going to the next.
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Lularoe Clothing sells woman’s dresses, maxi skirts, pencil skirts, sheath dresses and leggings just to name a few things.
Lularoe is supposed to be where fashion meets comfort? I’m kinda wondering when most fashion doesn’t meet comfort now a days.
Well other than the fact that the clothes at Lularoe remind me of another brand already out there such as Downeast basics make this opportunity seem not as hot as they make you believe.
Also can you even realistically make good money with Lularoe, traveling around doing show after show? The short answer is NO.
The value of these clothes are really just from the word to mouth from people who sell them. People saying good things are typically distributors and have a vested interest in making them look good. Many just buy these from friends or relatives to be nice.
Most people who tell you a product like this is good, are typically the person trying to sell you on it. Now I understand this is how it can work with anything but with MLM’s like this the salesmen are literally the buyers.
So when they sell to someone a lot of time they become a distributor as well. It’s after they get in too deep with Lularoe will they really know not to promote this in home party clothes show.
So in order to make this work like the Lularoe reps claim, you would need to buy the starter kit for around $6k. One of the big Lularoe consultant complaints is the claim that you could sell the 6k worth of clothes for around $12K. This is assuming that you live in a perfect world.
Now lets say that you don’t live in a perfect world.
If you where to buy 6k worth of clothes you would need to sell all of them at max retail amount just to break even, what? If anyone understands retail that is not going to happen with everything oe even most things.
Even with retail stores selling highly sought after name brand clothing they will still have things they couldn’t sell for full MSRP price. Stores all the time are markeing things down and sometime a lot or they will be sitting on inventory instead of profit.
If you try to sell everything at full retail MSRP you will maybe be able to swindle a couple of people to buy them from you but you’re not going to sell all of them at full price or even close to all of them.
For someone to want to buy from you and not a fancy store is rare but it can happen. The thing about shopping that is fun is actually getting out and shopping with friends.
Also getting something from certain stores has a certain value all in itself. Shopping is not typically necessary as many buy clothes they don’t need just because of the feeling and experience.
So when you sell clothes you’re not selling things like special rugged Carhart Work uniforms, you’re selling optional clothes that people have to “want to buy.”
Typically people “want to buy the experience”
Want the “fun of getting some retail therapy”
People buy products they don’t need because of “intrinsic value” of some sort. If you buy name brands it’s really the intrinsic value they have to make you look in style.
Many are buying clothes similar to Lularoe but with different styles and fits that might have been seen it in an advertisement or by celebrities. Many then think they just have to have it. When Lularoe sells any ol stuff that a mom can just wear around the house chances are most wont pay top dollar for that.
So if you have no advertisements and no intrinsic value beyond the name that Lularoe has made for itself, how hard will it be for you to sell it? Also for full retail price?
Unless you personally go to each persons house that you want to sell and throw in home parties, you’re going to have trouble selling these.
Then when you go to people’s houses or beg them to come to your house and they can get these clothes elsewhere you’re going to be in the beggar position instead of a more power position of them coming to you or a store. Most likely they will want a good discount to get them to realistically want to make a purchase from you over their favorite store.
Just think of the difference between the price you can get when someone wants something from you and you name your price, or when you find them and ask them if they want to buy something?
This is like a vendor you work with allowing everybody in town to sell the same hotubs, dolls, shoes etc as you’re selling. Instead of protecting you and giving you an area to sell, they just open the flood gates and allow anyone to “hang out ones shingle” and start selling.
Forget worrying about others selling in the same city or state, they will be selling in the same counties and neighborhoods. This allows for some to pick up some scrap sales here and there but nothing to start a real business with.
What is the motivation to buy Lularoe? Even bigger what is the motivation to sell it?
I don’t even like to shop but when it comes to shopping for clothes, unless you give me a really good deal I would rather go to a nice clean smelling store with a relaxing atmosphere.
I want the comfort knowing I could return it with a receipt and have a nice place to try it on. I’m not going to my neighbors or relatives house while they’re making lunch for their kids and having them try to up sell me on clothes.
The other way would be to have someone come into my house at a certain time instead of just going to a store when ever I feel like it. I could see this working for people who live in rural areas and it’s hard to make it to a store but other than that I just cannot see the value in Lularoe clothing.
These clothes kits that you buy allow you to pick the types of clothes you want but with no specific colors and styles. Which means they will throw in all the garbage they can’t seem to sell, kinda of like the chefs special throwing in all the food and ingredients they need to get rid of.
Then everybody in your town has no territories and you could be trying to sell the same mix matched clothes as a person down the street.
Well there goes that idea of selling all of them at full price. You would have to start getting competitive and that means selling them cheap.
Not only are you competing against the many other clothing stores but also you’re competing against many other Lularoe reps.
Just imagine if others are selling the same thing and people enjoy shopping in stores and not someones house or in their own house.
Then to make those few and far between sales you will need to slash prices to be competitive and travel to others homes to sell them on a few pieces of clothes.
Then that $6k investment turns into a profit of only around $1k if that. Then remember you need to make another order to get your inventory again to sell.
Cant Sell The Clothes Try The Next Best Thing And Sell Others On The Opportunity.
Then what is the best thing to do when you can’t sell something? Well you try to get others to do the same thing and hope they can do better and you can make money off of them, right?
Regular businesses and products do similar type things but there is one big difference, people actually want their products so by sharing the opportunity you’re actually helping others.
With the Lularoe business you’re typically trying to trick others into selling something that you couldn’t make work for yourself.
If you’re selling Lularoe clothes like crazy, then selling the opportunity would not be a bad idea but that does not seem to be the case for most. If you’re constantly hustling, the product is not selling…. you are.
When you’re the main reason it’s selling people are buying cause they just like you or have pity. This is great for one or two purchases but then after that liking or having pity on you only goes so far.
If you think about it, typically clothing stores have a huge stock room full of clothes right? They’re constantly slashing prices to make room for new inventory.
They typically have to have many sizes to accommodate all the different body types. This is not very realistic with the 381 pieces they give you with the starter kit. So unless you either want to target a certain groups of women or sell small, medium and large to one person you will have a lot of excess inventory in the unpopular prints, fabrics and sizes.
You will never be able to scale this business very well, as even if someone was able to sell all the 381 items to their friends and family they still would need to sell them again every month and once those people buy once what reason besides “being courteous to the distributor” do they really have to buy again?
They also have a 15% RESTOCKING FEE if you don’t want the items they choose for you. It is claimed that they sometimes just don’t respond to you and many have had to try to resell to other distributors but you can imagine that the distributors wont be paying top dollar for your inventory.
Well if your into funky polyester leggings and baggy long plain average looking t-shirts then this may be for you. Unless others are dying to buy the same thing chances are your better off just buying them once or twice but saving your $5k investment on something else.
So If Lularoe Is Not A Realistic Business Idea To Make Money… What Is?
Want to put your 5k investment to better use? You can succeed and make realistic and full time money online with your own business. Also carry no inventory and no traveling doing shows for about 20 times less money. If you’re able to sell these clothes just imagine what you could do with your own business online.
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It’s time to work smart not hard in 2017. Stop making the MLM owners rich and start a business where you’re really working for yourself and making yourself rich not others.
There are many other reasons this is not a very good idea. If you have been involved with Lularoe please share your experience and tell the world what you think of them.
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